New BTL rates and Bank of England’s next base rate reduction questioned…

In this week’s newsletter, we delve into some recent changes in the mortgage market, especially for Buy to Let investors, and analyse the latest economic indicators that influence monetary policy decisions.

Flexible Buy to Let Products
Newcastle Building Society has announced notable improvements to its Buy to Let mortgage products, reflecting a more favourable lending environment for property investors. The adjustments include rate reductions of up to 0.30% across various Buy to Let options, aimed at making investments more accessible and financially viable.

Key Product Highlights include a Two-Year Fixed Rate at 5.10% with up to 80% Loan-to-Value (LTV), accompanied by a product fee of £999 and a Five-Year Fixed Rate at 4.75% up to 80% LTV, this option also comes with a £999 fee. 

Both products are designed to cater to house purchases and remortgaging needs, with no stipulated minimum income or maximum age limits. Additionally, they allow up to 10% over payments per annum, providing flexibility for investors to manage their finances more efficiently.

ONS Data Creates Base Rate Uncertainty
Recent figures from the Office for National Statistics (ONS) have shown a slower-than-expected easing in pay rises, with the average regular pay growth excluding bonuses at 6%. This rate is slightly higher than the anticipated 5.8% and poses potential concerns for the Bank of England’s inflation control measures.

While the persistence of higher wage growth might seem beneficial for households struggling with inflation, it complicates the monetary policy landscape. Higher earnings can fuel further inflationary pressures by increasing demand and prices across the economy.

This scenario has led to some economists predicting the Bank of England may delay any base rate cuts until at least the 20 June meeting, with possibilities of further delays.

Speak to our award winning mortgage brokers
Whether you’re considering entering the market or adjusting your investment portfolio, the current climate is ripe with potential.

Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call. Be sure to ask about our Flexi-Lock service to ensure you can lock in the best rate.